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Crash Caused by a Recalled Part: Who Pays, Your Insurer or the Automaker?

By AutoInsuranceBundle.pro · Published November 2, 2026

Short answer: If a recalled or defective part caused your crash, your own collision or other applicable coverage usually pays first, minus your deductible. Your insurer may then try to recover what it paid from the automaker or parts maker, which is called subrogation. Check your VIN on NHTSA's recall lookup and keep the failed part. State rules vary.

A brake line fails, an air bag does not work as designed, or a steering part breaks. Later you learn the part was under recall, or should have been. It is natural to think the automaker should pay for everything. In the end it may, but the first check usually comes from somewhere else, and how you handle the first few days can affect any later defect claim.

The short video below covers the basics in about half a minute. It uses licensed stock footage and shows no real crash. The full guide follows.

Who pays first after a defect crash

In most cases, the claim starts the same way as any other crash. If you carry collision coverage, your insurer pays to repair or replace your car, minus your deductible. Injuries go through your medical or personal injury protection coverage, health insurance, or the other driver's liability coverage if another driver was also at fault.

Your insurer does not need to prove a defect before paying under your own coverage. That is the main advantage of using it: you get the car fixed or replaced without waiting for a dispute with a manufacturer to be resolved.

What subrogation means for you

After it pays, your insurer may try to recover its costs from whoever was responsible. If evidence shows a defective part caused the crash, that could be the automaker or a parts supplier. This process is called subrogation. If the insurer recovers money, you may get some or all of your deductible back, depending on your policy and your state.

Product defect claims can be complex and time-limited. If anyone was hurt, talk to a lawyer before signing releases or letting the car be destroyed.

How to check whether your car has a recall

The National Highway Traffic Safety Administration runs a free recall lookup where you can search by VIN. NHTSA says manufacturers will notify registered owners by first class mail within 60 days of notifying NHTSA of a recall decision, and that owners should contact a local dealership to fix the recalled part for free. NHTSA also notes that manufacturers are required to fix the problem by repairing it, replacing it, offering a refund, or in rare cases repurchasing the vehicle.

Run the lookup right after a crash that might involve a part failure. A recall that was open on the crash date can be important evidence, and so can a recall repair that was already done.

State rules vary on deadlines and defect claims. Call (888) 217-5854 for free quotes.

Evidence to keep

The single most important item is often the part itself. Once a car is repaired or sold for salvage, the evidence may be gone.

• The vehicle or the failed part. Ask your insurer and the shop to preserve it before repairs or salvage.
• Recall notices. Keep every letter or email from the manufacturer, including the date you received it.
• Repair and service records. These show whether the recall repair was offered, done or refused.
• Photos and video. Capture the scene, the damage and any visible part failure.
• The police report and witness details. These help show how the crash happened.
• A NHTSA complaint. NHTSA invites owners to report possible safety defects, and similar complaints can lead to an investigation.

If you ignored a recall notice

If you received a recall notice and did not get the free repair, that can complicate a defect claim. It usually does not cancel your own collision coverage, but it can affect how fault is shared. The safest habit is to schedule recall repairs as soon as parts are available and to follow any interim safety guidance in the notice.

Step-by-step after a suspected defect crash

1. Get safe and get medical care. Call police if anyone is hurt.
2. Tell your insurer that you suspect a part failure.
3. Ask that the car and part be preserved. Do not let the car be crushed before it is inspected.
4. Check the VIN on NHTSA's recall lookup and save a screenshot with the date.
5. Collect records: recall letters, service invoices and photos.
6. Ask about subrogation and whether your deductible could be recovered.
7. Talk to a lawyer if anyone was injured or the loss is large.

FAQ

Does my insurance cover a crash caused by a recalled part?

Usually yes, under your own collision coverage, minus the deductible, if you carry it. Liability-only policies do not pay to fix your own car.

Can I make the automaker pay instead?

Possibly, through a defect claim, but that can take time. Most drivers use their own coverage first and let the insurer seek repayment.

What is subrogation?

It is the process where your insurer, after paying your claim, tries to recover its costs from the party responsible, such as a manufacturer.

Will I get my deductible back?

You may, if the insurer recovers money. Ask your insurer how deductible recovery works under your policy.

How do I find out if my car has an open recall?

Search your VIN on NHTSA's free recall lookup, and watch for mailed notices from the manufacturer.

Questions about your coverage? Call a licensed agent at (888) 217-5854 to compare free quotes.

Important: This article is general information, not legal, tax, or insurance advice, and coverage rules vary by state, insurer, and policy. AutoInsuranceBundle.pro is a free, independent insurance comparison and referral service. We are not an insurance company, we do not issue policies, and we do not provide insurance advice. Calls to the number on this site are routed to licensed insurance agents or agencies in our partner network, who may receive compensation. Calling is completely voluntary and there is no obligation to buy. Rates, discounts, and availability vary by carrier, state, and individual eligibility; not all carriers, products, or discounts are available in all states. Calls may be recorded for quality and compliance purposes.